A private limited company is the most popular form of starting business as there is benefit of ability to raise capital by issuance of shares associated with it. But there are various compliances required to be followed once a company is incorporated. Managing the day to day operations of your business along with complying the corporate laws is very important because failure to do so will result in payment of heavy penalties up to worth Rs. 1 lakh a year or might even lead to the directors being blacklisted. A Pvt. Ltd. Co. is required to get their books of accounts audited and file the Income Tax Returns and Registrar of Companies (ROC) Compliances every financial year irrespective of the size and nature of the company. There are penal provisions if such compliances are not made.